Elgi Equipments Limited (ELGIEQUIP) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Elgi Equipments Limited stock ₹441, price ₹554, that is 20.3% below the price, quality 66 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 10, 2026.
How to read this chart
60‑month range ₹130.72 – ₹756.05 · fair‑value band ₹268.06 – ₹609.10 · the ₹553.90 price screens above the ₹441.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 10, 2026.
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Elgi Equipments Limited manufactures and sells air compressors and related parts in India, Europe, Australia, the United States, and internationally. It operates through two segments, Air Compressors and Automotive Equipments.
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The company offers oil lubricated screw and piston air compressors, oil free piston and screw air compressors, rotary and reciprocating air compressors, diesel and electric portable air compressors, railway air compressors, heat recovery systems, and medical air compressors and vacuum pumps, as well as air accessories; air compressor parts, filters and separators, lubricants and fluids, and service kits, and other accessories; and air compressor service.
It is also involved in the trading of air compressors, nitrogen systems, and altitude training systems; manufacture and trading of automotive garage equipment, compressed air systems, and vacuum pumps for medical applications; renting of property; and provision of design services.
In addition, the company manufactures and trades compressors, hydraulic hammers, and rampi cars. The company serves manufacturing, textile, agriculture, automotive, and construction industries. Elgi Equipments Limited was incorporated in 1960 and is based in Coimbatore, India.
Stock analysis
Elgi Equipments Limited (ELGIEQUIP) currently trades at ₹553.90, while our model-based Fair Value estimate is ₹441.36, 20% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹261.87 per share, and 0 of the 26 models we run sit above the ₹553.90 price.
Bear case: the Economic Profit group reads lowest at ₹112.17, and 26 of the 26 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ₹268.06 (bear) to ₹609.10 (bull), the price of ₹553.90 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Elgi Equipments Limited reported revenue of ₹39.5B in FY2026 versus ₹25.2B in FY2022, a compound +11.8%/yr. Reported net income was ₹4.3B in FY2026, compounding +24.6%/yr from FY2022.
Key figures
Market cap ₹175B (≈ $1.9B) Small · P/E ratio 38.5 · P/S ratio 4.22 · EPS (TTM) ₹14.40 · Dividend yield 0.5% · Net margin 10.8% · Return on equity 21.0% · Return on assets (EBIT) 28.7% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 68 out of 100 (medium confidence).
What moves the price
The share trades about 14% below its 52-week high and 35% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −47% fair-value upside, at −20%, ELGIEQUIP screens cheaper than that median.
Fair Value models
Bear₹268.06Fair Value ₹441.36Bull₹609.10
Price ₹553.90 · Downside -20.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹7.21 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF₹131.05₹197.00₹292.9280
Growth DCF₹128.91₹185.55₹261.9279
Owner Earnings₹116.88₹174.21₹257.5876
All 26 models by family
DCF Models
FCF DCF₹131.05₹197.00₹292.9280
Owner Earnings₹116.88₹174.21₹257.5876
5Y Revenue Exit₹148.92₹245.20₹376.3071
5Y EBITDA Exit₹163.30₹274.93₹415.2674
5Y P/E Exit₹182.72₹315.06₹467.2570
10Y Revenue Exit₹135.77₹216.40₹340.1066
10Y EBITDA Exit₹147.64₹235.17₹368.2367
10Y P/E Exit₹158.75₹260.52₹405.7663
Earnings-Based
Graham-Dodd₹92.80₹437.66₹601.8164
Lynch FV₹127.60₹182.29₹236.9761
PEG = 1.0₹127.60₹182.29₹236.9757
EPV₹102.05₹111.67₹119.5174
Dividend Discount
Gordon GGM₹22.46₹37.86₹49.3868
DDM Multi-Stage₹22.46₹35.79₹40.7067
Multiples
P/E Multiple₹214.94₹286.58₹358.2363
P/S Multiple₹174.00₹231.99₹289.9958
P/B Multiple₹211.07₹281.43₹351.7855
EV/EBIT₹205.38₹271.89₹338.3966
EV/EBITDA₹184.97₹244.68₹304.3867
EV/Revenue₹148.27₹209.29₹270.3254
Asset-Based
NCAV (Graham)₹24.63₹37.32₹46.6554
Growth DCF
Growth DCF₹128.91₹185.55₹261.9279
Rev-Margin DCF₹148.92₹242.58₹364.0172
Economic Profit
Residual Income₹71.06₹94.02₹149.0574
ROIC Compounder₹109.47₹130.32₹154.6972
Growth Earnings
Growth-Adj P/E₹183.31₹261.87₹340.4367
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+12.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.5%
Start year 2021 (pandemic). Over 10 years: +11.0% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.4%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+33.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+33.3%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.33.3% vs 23.8%, picking up
Profit margin 2005 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 13%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+34.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+11.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +28.9% a year for the price and +7.0% for the forecasts.
Compare Elgi Equipments Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 845 stocks
Beats the industry median on 7/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score66 · Top 25%
Fair Value upside−20.3% · Above median
Profitability
Return on equity (12 months)21.0% · Top 25%
Return on assets12.1% · Top 25%
Net margin (12 months)10.8% · Above median
Operating margin (12 months)12.3% · Above median
Growth and dividend
Revenue growth (quarter YoY)22.6% · Top 25%
Dividend yield (12 months)0.5% · Bottom 25%
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
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Is Elgi Equipments Limited (ELGIEQUIP) overvalued or undervalued?
As of Nov 10, 2026, our model estimates a fair value of ₹441.36 versus a price of ₹553.90, about 20% lower (overvalued).
What is the fair value of ELGIEQUIP?
Our model-based fair value for Elgi Equipments Limited is ₹441.36 (as of Nov 10, 2026), built from audited fundamentals. The current price: ₹553.90.
What is the quality score of ELGIEQUIP?
Elgi Equipments Limited has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Elgi Equipments Limited (ELGIEQUIP)?
Our model-based price target is the fair value of ₹441.36 (as of Nov 10, 2026) from 26 valuation models. Cautious scenario ₹268.06, optimistic scenario ₹609.10. It is a calculation from audited fundamentals, not an analyst target.
What is the Elgi Equipments Limited stock forecast for 2026?
Our models put fair value at ₹441.36, about 20% lower versus a price of ₹553.90 (overvalued). Cautious scenario ₹268.06, optimistic scenario ₹609.10. The calculation is refreshed regularly with new filings.
What is the revenue of Elgi Equipments Limited (ELGIEQUIP)?
Elgi Equipments Limited reported trailing-twelve-month revenue of about ₹41.5B (latest available figure, as of Nov 10, 2026).
Does Elgi Equipments Limited pay a dividend?
Elgi Equipments Limited currently shows a dividend yield of 0.49% relative to its recent price (as of Nov 10, 2026).
How much is the dividend of Elgi Equipments Limited (ELGIEQUIP) and when is the ex-dividend date?
Elgi Equipments Limited pays a dividend of ₹2.70 per share a year, a dividend yield of 0.5%. The last ex-dividend date was Jul 17, 2026. A dividend has been paid every year since at least 2002. The payout ratio is 18.8% of earnings. Free cash flow covers the dividend 4.02 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Elgi Equipments Limited (ELGIEQUIP)?
For today's price to be fair in a discounted-cash-flow model, Elgi Equipments Limited would have to grow free cash flow by +34.2 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.5 % per year. As of Nov 10, 2026.
What discount rate (WACC) does the fair value of ELGIEQUIP use?
Our models discount Elgi Equipments Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.31, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Elgi Equipments Limited that is +34.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Elgi Equipments Limited (ELGIEQUIP) delivered so far?
Over the past 5 years revenue at Elgi Equipments Limited grew +15.5 % a year. The price currently implies free-cash-flow growth of +34.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Elgi Equipments Limited (ELGIEQUIP) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Elgi Equipments Limited (+34.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Elgi Equipments Limited (ELGIEQUIP)?
The free-cash-flow yield on the price is 1.96 %: that much free cash flow Elgi Equipments Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Elgi Equipments Limited (ELGIEQUIP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Elgi Equipments Limited it is ₹441.36 per share (as of Nov 10, 2026), against a price of ₹553.90. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Elgi Equipments Limited stock overvalued or undervalued in 2026?
As of Nov 10, 2026, ELGIEQUIP trades above its calculated fair value: price ₹553.90, fair value ₹441.36, a gap of about −20% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ELGIEQUIP?
No. The price is what the market pays today (₹553.90); the fair value is what the company's own numbers justify (₹441.36). For Elgi Equipments Limited the two are ₹112.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Elgi Equipments Limited worth?
The market values Elgi Equipments Limited at about ₹175B (market capitalisation, as of Nov 10, 2026). Per share that is ₹553.90; our models calculate a fair value of ₹441.36 per share.
What do the bullish and bearish scenarios say about ELGIEQUIP?
Our models span a range for Elgi Equipments Limited: cautious scenario ₹268.06, base ₹441.36, optimistic ₹609.10 per share (as of Nov 10, 2026, price ₹553.90). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ELGIEQUIP?
Elgi Equipments Limited trades at a price-to-earnings ratio of 38.5 (as of Nov 10, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹441.36 is built from several models across several years. Median P/E at fiscal year-end, 6 fiscal years (2021 to 2026), reported earnings: 46.6. Other multiples: P/B 7.8, P/S 4.2, EV/EBITDA 28.9.
How solid is the balance sheet of Elgi Equipments Limited (ELGIEQUIP)?
Balance-sheet figures for Elgi Equipments Limited (as of Nov 10, 2026): return on equity 21.0%. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is ELGIEQUIP from its 52-week high?
Elgi Equipments Limited trades at ₹553.90, about 14% below its 52-week high of ₹644.90 and 35% above the low of ₹411.28 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of ₹441.36 is for.
Which stocks are comparable to Elgi Equipments Limited?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Elgi Equipments Limited stock attractive at the current price?
The data as of Nov 10, 2026: price ₹553.90, calculated fair value ₹441.36 (−20%), Quality Score 66/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ELGIEQUIP calculated?
We run Elgi Equipments Limited through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹441.36 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.1% above its aggregate fair value. Elgi Equipments Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Elgi Equipments Limited (ELGIEQUIP)?
The closing price on Nov 9, 2026 was ₹553.90. Our model-based fair value is ₹441.36, about 20% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Elgi Equipments Limited right now?
Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹268.06 to ₹609.10) leaves room in how you read the outcome.
Where does the earnings growth of Elgi Equipments Limited (ELGIEQUIP) come from?
Earnings per share at Elgi Equipments Limited grew +22.7 % a year from 2015 to 2026. Broken into its drivers: revenue per share +11.3 %, EBIT margin −0.2 %, tax rate +0.3 %, residual (interest, one-offs) +10.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Elgi Equipments Limited
How large is the market capitalisation of Elgi Equipments Limited (ELGIEQUIP)?
The market capitalisation of Elgi Equipments Limited is ₹175B (≈ $1.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Elgi Equipments Limited (ELGIEQUIP)?
The price-to-sales ratio of Elgi Equipments Limited is 4.22 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Elgi Equipments Limited (ELGIEQUIP)?
Earnings per share at Elgi Equipments Limited are ₹14.40 (price ÷ EPS = P/E 38.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Elgi Equipments Limited (ELGIEQUIP)?
The dividend yield of Elgi Equipments Limited is 0.5% (payout 18.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Elgi Equipments Limited (ELGIEQUIP)?
The net margin of Elgi Equipments Limited is 10.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Elgi Equipments Limited (ELGIEQUIP)?
The return on equity (ROE) of Elgi Equipments Limited is 21.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Elgi Equipments Limited (ELGIEQUIP)?
On an EBIT basis the return on assets of Elgi Equipments Limited is 28.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Elgi Equipments Limited (ELGIEQUIP)?
The operating margin of Elgi Equipments Limited is 12.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Elgi Equipments Limited (ELGIEQUIP)?
Revenue at Elgi Equipments Limited is growing +22.6% versus a year earlier (3y avg +9.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Elgi Equipments Limited (ELGIEQUIP)?
Earnings per share at Elgi Equipments Limited are growing +21.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Elgi Equipments Limited (ELGIEQUIP) hold?
Elgi Equipments Limited holds more cash than debt, ₹1.8B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Some data
Nov 10, 2026